What is cost accounting?
Cost accounting deals with working out the cost of a particular operation or job, It is quite a complex task which involves monitoring expenditure, prevention of extra costs, minimizing the costs and generating reports.
Who is a Cost Accountant?
Cost accountants are specially trained accountants who are involved in assessment of costs of products, services and processes. The information generated by the Cost Accountant is used for making important decisions in the organization. They use various software and observe and analyze costs. All this is done basically to minimize the cost and have better estimates for future projections. They deal with all types of tangible and intangible costs and the methods that they employ are fairly consistent in many industries. Cost accountants attempt to find out even minute things that may affect cost and ultimately profit.
Apart from working on the computers they also do physical verification and observation of inventories etc.
Cost accountants work either in Audit areas like Cost Audit in corporate sector and Compliance Audit of RBI or Stock Audit for Banks or in certification areas. Government has authorized Cost Accountants in practice for certifying various returns and to issue compliance certificate as per their formats. For example Certificate of Cost of production of captively consumed goods as per Central Excise Act, Certificate for Average Cost of transportation as per the Central Excise Valuation Rules.
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